The global security software market for businesses is around a $6 billion market by our estimates benefiting anti-virus software providers like Symantec (NASDAQ:SYMC) and McAfee, which is part Intel (NASDAQ:INTC). Given the growth in security needs for enterprises and individuals given the boom in mobile, connected devices, Intel sniffed out a promising growth opportunity by picking up McAfee. Through this deal, Intel can gain an edge on rival Advanced Micro Devices (NYSE:AMD) by embedding security software in Intel processors as well as tap the growth in mobile.
Articles for McAfee
McAfee Targets Enterprise Security Riding Shotgun for Intel
Graph ItNEW!Thursday, March 31st, 2011 by Trefis Team
Intel to McAfee: Let’s Secure the Cloud
Graph ItNEW!Wednesday, March 16th, 2011 by Trefis Team
Intel (NASDAQ:INTC) completed its acquisition of McAfee recently establishing itself as one of the leading security software providers. Around one-third of McAfee’s value is attributable to security software for businesses by our estimates. McAfee mainly competes with Symantec (NASDAQ:SYMC), Trend Micro, LANDesk Software and Microsoft (NASDAQ:MSFT) in this segment and offers products like Endpoint Protection, Data Protection and Mobile Phone Security.
Mobile Device Security Creates Attractive Growth Opportunity for Symantec
Graph ItNEW!Monday, February 14th, 2011 by Trefis Team
Symantec (NASDAQ:SYMC) is the leader in the security software market and competes with McAfee (NYSE:MFE) (recently acquired by Intel (NYSE:INTC), Computer Associates, AVG, TrendMicro and Kaspersky Labs. As per our estimate, security software (for both consumers and businesses) constitutes more than 50% of our $21.36 price estimate for Symantec stock, while storage software makes up the balance. Our estimate for Symantec stock implies upside to the current market price.
Cisco Can Benefit from Network Security Market Growth, But Upside is Limited
Graph ItNEW!Tuesday, December 28th, 2010 by Trefis Team
Cyber security threats have received heightened attention lately with reports of attacks on Visa (NYSE:V) and MasterCard (NYSE:MA) in which attackers flooded the websites with traffic, slowing access for customers. Lawmakers are pushing for stricter cyber security laws, which bodes well for growth of the network security market, which includes players like Cisco (NASDAQ:CSCO), Juniper (NYSE:JNPR), HP (NYSE:HPQ), and McAfee (NYSE:MFE).
Could this trend create upside to Cisco’s stock value?
Intel – McAfee Acquisition Scrutiny Not a Concern for Stock Value
Graph ItNEW!Tuesday, December 21st, 2010 by Trefis Team
Intel’s (NASDAQ:INTC) paid a handsome $7.68 Billion to buy online security firm McAfee (NYSE:MFE) back in Aug 2010. As a result we updated our model to reflect the impact of acquisition and the premium payment, which resulted in a slight downgrade to our price estimate. However, it now seems that the transaction might be delayed or may even come under threat of termination due to the undergoing scrutiny from European Union.
Our price estimate for Intel stands at $26.28, well ahead of market value.
Cisco in the Thick of the Security Business
Graph ItNEW!Thursday, November 18th, 2010 by Trefis Team
Cisco’s (NASDAQ:CSCO) revenues from sales of network security products like Virtual Private Networks (VPNs) and firewalls have risen from an estimated $1.1 billion in 2005 to around $1.9 billion in 2009.
Though Cisco is not as dominant in this area as the routers and switches business, it still commands a respectable 35-40% market share. Cisco’s primary competitors like Juniper (NYSE:JNPR), HP (NYSE:HPQ), Check Point (NASDAQ:CHKP) and McAfee (NYSE:MFE) are also seeing revenue growth, contributing to the overall growth of network security market.
While we expect Cisco will continue with its gradual growth trend in network security sales, the Trefis member community predicts a slight decline. We currently have a Trefis price estimate of $24.04 for Cisco’s stock, about 24% above the current market price of $19.44.
Strong Competition Could Hinder Symantec’s Storage Share Growth
Graph ItNEW!Thursday, September 2nd, 2010 by Trefis Team
Symantec (NASDAQ:SYMC) is going to face stiffer competition from McAfee (NYSE:MFE), which was recently acquired by the semiconductor giant Intel (NASDAQ:INTC). Symantec competes with McAfee in the security software market for consumers as well as businesses, while its major competitor in storage software market is EMC-acquired Data Domain.
Fierce competition from bigger players could block Symantec’s market share growth in the storage software market, leading to a modest stock downside. We estimate Storage Software constitutes around 40% of the $22 Trefis price estimate for Symantec’s stock, (about 62% above the current market price of $14).
McAfee Deal Could Lift Intel’s Stock by 3%
Graph ItNEW!Friday, August 27th, 2010 by Trefis Team
Semiconductor giant Intel (NASDAQ:INTC) is paying a handsome premium to acquire McAfee (NYSE:MFE), a leading security software developer. Intel’s bid values McAfee at $48 a share , which is about 48% higher than the Trefis fair-value estimate of $32.35 a share.
McAfee’s business has expanded with the breadth and complexity of online security threats. The company’s revenues grew by nearly 20% last year, to $1.9 billion. Intel hopes to gain a competitive edge over rival AMD (NYSE:AMD) by integrating McAfee’s security software in its microprocessors and chipsets.
We estimate that McAfee’s security business could yield a 3% upside too the $24.30 Trefis stock price estimate for Intel. Our analysis follows below. Read More »
Expectations for Higher McAfee Market Share in Business Security Software
Graph ItNEW!Tuesday, August 24th, 2010 by Trefis Team
Intel (NASDAQ:INTC) announced its acquisition of McAfee (NYSE:MFE) for $7.68 billion in cash a few days ago. Rising market share for McAfee’s enterprise security software, as opposed to a flat forecast by Trefis, could push up the Trefis estimate for McAfee’s intrinsic value by around 11%. We estimate that Security Software for Businesses accounts for around one-third of McAfee’s value.
Trefis members have created forecasts for two key drivers of McAfee’s stock over the last week: (1) McAfee Share in Security Software for Businesses Market and (2) McAfee Share in Antivirus & Security Software Market. The member forecasts suggest that McAfee Share in Security Software for Businesses Market will trend higher than the estimates of the in-house team of analysts at Trefis, while McAfee Share in Antivirus & Security Software Market will trend in-line.
McAfee competes with Symantec (NASDAQ:SYMC) and TrendMicro in the enterprise as well as consumer antivirus market. We currently have a Trefis price estimate of around $32 for McAfee’s stock, about 31% below the current market price of around $47.
Below are charts showing recent estimates created by Trefis members for the two drivers in detail.
Can Intel Justify $48 Per Share For McAfee?
Graph ItNEW!Monday, August 23rd, 2010 by Trefis Team
Intel (NASDAQ:INTC) recently announced that it was buying McAfee (NYSE:MFE) for $7.68 billion in cash. After the announcement, McAfee’s stock price shot up from around $30 to $47. The Trefis price estimate for McAfee’s stock is around $32, while the Intel deal values McAfee at around $48 a share.
Based on McAfee’s fundamentals, we think Intel overpaid. However, we could be proved wrong if McAfee manages to dramatically boost its shares of the corporate and consumer security software markets over the next few years. Our analysis follows below. Read More »
McAfee : All Articles
- Week of 2011-03-27
- Week of 2011-03-13
- Week of 2011-02-13
- Week of 2010-12-26
- Week of 2010-12-19
- Week of 2010-11-14
- Week of 2010-08-29
- Week of 2010-08-22
- 08/27/10 McAfee Deal Could Lift Intel’s Stock by 3%
- 08/24/10 Expectations for Higher McAfee Market Share in Business Security Software
- 08/23/10 Can Intel Justify $48 Per Share For McAfee?
- Week of 2010-08-15
- 08/20/10 McAfee Brings Smartphone Security Chops to Intel
- 08/17/10 Declining Margins Could Hurt Symantec’s Stock
- Week of 2010-07-18
- 07/22/10 Larger Decline in Norton AntiVirus Share Would Impact Symantec
- 07/20/10 McAfee Could Gain Share in Antivirus, Network Security Markets
- Week of 2010-06-27
- Week of 2010-05-23
- Week of 2010-05-16